The Little D Corporation has $150 in current earnings and profits and $100 in accumulated earnings and
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The Little D Corporation has $150 in current earnings and profits and $100 in accumulated earnings and profits. It makes a $400 distribution to its sole shareholder whose stock basis is $100.What are the shareholder’s tax consequences?
a. $250 dividend
b. $250 dividend; $50 capital gain
c. $250 dividend; $100 capital gain
d. $400 dividend AppendixLO1
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Related Book For
Taxation For Decision Makers 2008
ISBN: 9780324654110
2nd Edition
Authors: Shirley Dennis-Escoffier, Karen A. Fortin
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